Sheppard Pratt cuts its rates about 11%

Maryland Watch

"We know our patients are satisfied by our high-quality services," said John J. Kent Jr., executive vice president and chief operating officer. "However, in today's highly competitive environment, we need to offer them at a lower charge. This reduction is essential to retaining market share in an increasingly price-sensitive market."

The charge per inpatient day at Sheppard Pratt's Towson psychiatric hospital will drop from $640 to $550 (14 percent) for adults and from $695 to $660 (5 percent) for children and adolescents. The one-time hospital admission charge will be reduced from $455 to $250.

Sheppard Pratt also operates suburban mental health centers and has contracts to provide psychiatric services at St. Agnes, Fallston General and Harford Memorial hospitals.

Robert B. Murray, executive director of the state's Health Services Cost Review Commission, which sets hospital rates, said competition has led other private psychiatric hospitals to charge below state-approved rates in the past year.